Arbitration can be a valuable dispute-resolution tool where confidentiality is important, when you want to specify jurisdiction or venue, in consumer cases, and in consumer or employment-related class actions. It pays to be proactive by identifying those disputes that should be litigated in court and those disputes that should be arbitrated. Lack of clarity or a misunderstanding as to which disputes should be in arbitration and which ones should be fought in court could land a company in a trial or an arbitration that can have huge drawbacks, such as a class action that could have been avoided by a waiver clause or a lengthy arbitration that could have been dismissed through a dispositive motion.
A. An annual check-up of arbitration provisions or practices